Don’t park under this ad!
Why do businesses advertise?
What are brand name products?
What are the benefits and costs of brands for
How can informative advertising help you make a
A FEW MORE QUESTIONS…
Who pays for advertising?
How does advertising benefit the consumer?
WHERE DO WE SEE ADVERTISING?
Magazines Bumper Stickers
Commercials Sporting Fields
Movie Preview Internet
Product Placement Events
WHO DOES ADVERTISING TARGET?
If you remember their name, you’ll buy their
Slogans, Jingles, logos
Lets take a look at some classics…..
Classic Slogans and Jingles
Now let’s test you slogan knowledge!
Increase price of product
Informs you about a products features and
Complex items or technical products
Appeals to your need for intellectual
Mac vs. PC
Mazda Protégé 5
Comparing Products to competitors!
Shows competitors weaknesses and showcases
the best qualities of the brand being advertised
EX: Tooth Whitening, paste vs. strips
4 out of 5 Dentists Agree (old school!)
Charmin Toilet Paper
Appeals to your emotions to buy
Doesn’t provide much useful information
Owning this product will make you…
Ignore these, evaluate reality
Tide to go
Cadillac (Kate Walsh)
MORE ON ADVERTISING
How much was a 30-second spot during last year’s
Businesses spend $200 billion a year in advertising.
Pepsico spent $1.8 BILLION on advertising!
Coke spent $2.1 BILLION!
CONSUMER PROBLEMS WITH ADS
FTC defines Deception as a material
“representation, omission, or practice that is
likely to mislead a (reasonable) consumer…to
the consumer’s detriment
Fraud is a deliberate deception that, with full
knowledge of the perpetrator, misleads or
gains an unfair advantage and results in
financial loss to the consumer
Using claims or descriptions to exaggerate (“puff up”) a
product’s reputation or appeal
FACTUALLY WRONG – penalties
but hard to prosecute vague
but difficult to prove
Implies a bargain
Lower prices than
Before it can go on
sale a retailer must
sell the item regularly
at the nonsale price
Retailer cannot legally say that its prices
are lower than a competitor’s without
Only imply lower prices
Do not provide proof
Practice of convincing customers to buy a higher-
priced item than they originally intended
i.e., VCR - $300 and sales person shows you a
More features – Do you need these features?
Nothing illegal about this practice
Generally the retailer makes a bigger profit on
more expensive items
Be prepared to say NO!!!
Companies may advertise sales at 50% off.
However, the company first marks the product way
up and then marks them down 50% so that they
still make a profit.
The item priced below cost to attract you to the
Retailer will lose money if you only buy that item,
but it gets you to the store in hopes of purchasing
FTC (FEDERAL TRADE COMMISSION)
Most important federal consumer protection
Responsible for protecting consumers from unfair
or deceptive business practices, such as
misleading information in advertising or product
Each advertisement should…
Target a specific group
This is your TARGET MARKET
Fit into ONE type of ad
Informative, comparison, persuasive